Appraisal Time Bomb Debunked
Information provided by NAR:
During the recent holiday break a number of you have contacted NAR concerning a video about changes coming to appraisals conducted for Fannie Mae transactions. The video is sent by email and usually contains the subject line : “Appraisal Time Bomb.” We’ve received numerous member inquiries about the “Appraisal Time Bomb.”
The primary concerns we are hearing from members are: adding time to the appraisal process and forcing appraisers to use lower-value, lower-quality comps—a tool that appears to encourage lower-value appraisals.
Although the video has received attention, it is not accurate. NAR is watching the roll-out of CU closely and has asked members to give us feedback as soon as the tool is available and used by lenders at the end of January.
Here’s what NAR has been working on regarding CU:
- NAR is proactively working with Fannie Mae on this issue.
- NAR held a conference call with Fannie Mae to discuss CU in November 2014
- NAR’s Real Property Valuation Committee and Conventional Financing and Policy Committee are actively engaged in the policy discussion about CU.
- NAR asked Fannie to update its FAQ’s on their website to address appraiser questions.
Visit www.REALTOR.org for the latest information on the CU implementation. If you have any additional concerns or questions please contact Sarah C. Young, NAR’s Policy Representative for Appraisal Issues at: scyoung@realtors.org
Note: These are the direct links to the sites mentioned in the memo, if the link embedded in the doesn’t work copy and paste these links into your web browser
https://www.fanniemae.com/content/faq/collateral-underwriter-faqs.pdf
Tags: appraisals, fannie mae, NAR